Dooley replaces Jimmy Robinson, who moved into a senior coaching consultant role with the Cowboys. Robinson was the Cowboys' wide receivers coach the last two seasons.
Dooley was fired by Tennessee last November after a 15-21 record in three seasons with the Volunteers. His three consecutive losing seasons marked the longest stretch of futility for the storied program.
The Cowboys have two open positions to fill on their offensive coaching staff -- running backs and tight ends.
Dooley worked with Cowboys head coach Jason Garrett from 2005-06, when the pair coached with the Miami Dolphins.